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Verizon to help reduce third-party mystery fees

Verizon (NYSE: VZ) will no longer let third-party providers levy charges on consumers' wireline telephone bills in a practice that is known as "cramming."

U.S. Senator Jay Rockefeller heralded Verizon's effort as a big step he hopes that will encourage fellow large phone companies to stop the practice. "Verizon has stepped up for consumers in a big way," said Rockefeller, the chairman of the Commerce Committee in a statement.

Bill Kula, a spokesman for Verizon, said in a Business Week article that many crammers are third-party companies that provide voice mail and personal toll-free number services.

Last year, an investigation revealed that cramming was a $2 billion industry segment.

What's more, the committee found that telephone companies like Verizon billed over $10 billion in third-party charges, with a large amount of them never authorized by the consumer.

"Telephone customers have been tricked into paying for third-party services they didn't want or use or even know they were being billed for," Rockefeller said.